Baby Boomers in the Tax Market
The Baby Boomers, those born between 1946 and 1964, are now approaching the age of retirement and already we are witnessing the repercussions of their departure across the Tax Market.
The Baby Boomers make up a large proportion of the working population, particularly at a managerial and leadership level. In comparison, Millennials and Gen X’ers are far fewer in size, meaning they will be unable to fill all the open roles left by the Boomers. This is something we expect to impact companies over the coming years, as they struggle to fill recruitment voids. For Millennials, it is likely they will be forced to assume management roles quicker than previous generations which holds both huge opportunity and new challenges for those working in the industry.
In addition to age, there are two primary drivers that are causing Baby Boomers to exit the profession at this time:
The current strength of the economy
Retirement portfolios have now recovered to their pre-Great Recession standing, meaning that finally Baby Boomers have the confidence and financial security to call it quits.
There has been a large increase in the volume of Tax companies working with independent contractors. Boomers are taking advantage of the industry becoming more accepting of contractors as a legitimate alternative to traditional consulting firms and are taking the plunge with freelance consultancy and contracting roles alongside their retirement.
For Baby Boomers looking to retire in the near future, there will be an expectation that they will need to build succession planning strategies in advance, to support their company during their departure. As for the organisations, they must be prepared to adapt and approach change with an open mind in order to overcome this generational shift within the Tax Market.